The Department of Finance (DoF) has reaffirmed its commitment to transparency and strict compliance with the Supreme Court (SC) decision and relevant laws in determining the National Tax Allotment (NTA) shares for local government units (LGUs).
“We assure our LGUs that we are strictly adhering to transparency and accountability, especially with the principles set by the Supreme Court, in implementing the Mandanas-Garcia ruling. Nothing is shortchanged. We are very much welcome and open to having continued dialogues with our LGUs to help them strengthen their fiscal capacities and optimize resource utilization to deliver more and better services to Filipinos,” Finance Secretary Ralph G. Recto said.
The 2019 Mandanas-Garcia ruling of the SC, which took effect in 2022, increased the NTA shares of LGUs to 40% of all national taxes beyond those collected by the Bureau of Internal Revenue (BIR). This adjustment was intended to enhance the fiscal autonomy of LGUs by granting them a more substantial share of the national tax base.
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